US Jobs at ‘Inflection Point’ Poses Risks for Powell

I’m Rich Miller, an enterprise writer on the economy in Washington. Today we’re looking at what Goldman Sachs calls an “inflection point” for the US labor market. Send feedback and tips to ecodaily@bloomberg.net or get in touch on X via @economics. And if you aren’t yet signed up to receive this newsletter, you can do so here.

Ever since the Federal Reserve began jacking up interest rates more than two years ago, Chair Jerome Powell made clear that the central bank not only wanted to rein in skyrocketing inflation. It also wanted to restore some balance to a labor market where demand for workers coming out of the pandemic was far outstripping supply.